Vietnam: What is the scope of operation of branches of microfinance institutions?

According to Vietnam’s regulations, “branch” means a dependent unit of an MFI, has its own seal and performs one or more functions of the MFI in accordance with its internal regulations and regulations of law. According to Circular No. 19/2019/TT-NHNN of the State Bank of Vietnam, a branch of the MFI operates within the province or central-affiliated city where it is located.

Besides, Circular No. 19/2019/TT-NHNN stipulates that a transaction office operates within the operating area of the branch managing it.

The MFI’s branch or transaction office shall be named in accordance with relevant regulations of law as follows:

- Name of the branch: Full name of the MFI - Branch (name of the branch);

- Name of the transaction office: Full name of the MFI - Branch (name of the branch managing the transaction office) - Transaction office (name of the transaction office).

If the change of the administrative division results in the change of the operating area of the branch or transaction office, change of address of the branch or transaction office (without change of location of the branch or transaction office), the MFI is not required to make any adjustment. The MFI shall send a notification of the change to the State Bank branch of the province or central-affiliated city where the MFI's branch or transaction office is located (hereinafter referred to as "the State Bank branch") within 05 working days from the date of change of the administrative division.

View other provisions at Circular No. 19/2019/TT-NHNN of the State Bank of Vietnam, effective from January 01, 2020.

Thu Ba

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